FBR moves to prevent misuse of duty-free chemical imports under Export Facilitation Scheme

The Federal Board of Revenue has started consultations to tighten monitoring of dyes and chemicals brought in under the Export Facilitation Scheme, after concerns that duty-concessionary imports could be sold domestically rather than used for exports. Profit by Pakistan Today reported that FBR Chairman Rashid Mahmood Langrial acted on complaints from the Pakistan Chemicals and Dyes Merchants Association and asked Customs Export to engage the body. Customs officials and association representatives, meeting at Customs House Karachi, agreed that an effective monitoring mechanism was needed to confirm that imported raw materials reach their designated industries.

The association said imports under the scheme had risen without a matching visible increase in exports, pointing to a possible shift toward domestic sales. It singled out textile dyes, including reactive dyes under PCT 3204.1600, as well as chemical goods falling within headings 28 and 29 of the tariff schedule. Proposed steps include checking raw material imports against actual consumption, tying EFS permissions to a formula based on consumption and export volumes, and running transparent audits.

Both sides also exchanged import figures, and the association argued that these steps would keep duty and tax concessions tied to export output rather than domestic sales. Collector Customs Exports Afnan Khan, Deputy Collector EFS Waqar Ahmed, PCDMA Chairman Saleem Mukati and Senior Vice Chairman Shahid Bashir took part, along with other association and Customs representatives.